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Saturday, March 28, 2009

WATBlog Update There are 2 new posts in "WATBlog.com - Web, Advertising and Technology Blog in India"

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There are 2 new posts in "WATBlog.com - Web, Advertising and Technology Blog in India"

BSNL and Hungama Tie Up to Launch on Demand Digital Entertainment Store

BSNL has introduced a entertainment broadband value added service with Hungama who have conceptualized and created by Hungama Digital Media. This digital store basically offers music, videos and games and claims to have a catalogue of over 50,000 songs and 1000 videos. Also, BSNL customers can also access over 500 plus games and redeem loads of prizes by subscribing to the digital store. The site is hosted at bsnl.hungama.com

Hungama will also manage and update the digital store with the through content partners including T-series, Yash Raj Films, etc. These unique and superior quality services will be available in a rental subscription model offered Unlimited Music Downloads for Rs. 149 per month and Unlimited Game plays for Rs. 49 per month only. I really like this price to be honest.

Neeraj Roy, Managing Director & CEO, Hungama Digital Media said, "We are very excited about our partnership with India's number one broadband service provider BSNL, to launch the country's first On Demand Entertainment store.  With this digital store, all BSNL customers will have exclusive access to download their favourite songs and music videos digitally, as well as download and play games.  These unique services on the digital store are available at extremely competitive price points of Unlimited Music Downloads for Rs. 149 per month and Unlimited Game Downloads for Rs. 49 per month. The price points demonstrate the value and convenience that we are bringing to the BSNL customer, coupled with the interactive features that will provide an enriched experience to the user."

The release claims this site to be the first digital products store in India and from what we read it seems they are betting big on music to drive sales and business. It’s been quite a while since digital music was set to score over physical music sales, especially with mobile creeping in to the picture. Considering that, such a site has come a little late in my opinion.

What is interesting to see is the model they have chosen. Unlike itunes which charges per download, BSNL and Hungama have bet on monthly subscriptions which is actually a more scalable option in India, though not as cheap as the itunes model would have been for Indian customers. For Hungama in particular tying up with BSNL is a good strategy and as is obvious is a seemingly perfect VAS for broadband customers. The point that will undoubtedly remain is whether this can curb or will it encourage piracy of music and games and the content sold on the site.

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The Changing Trends in Online Advertising

If you are a netizen, then it is assumed that Online Advertising has played a major role in all the activities that you have performed on the web. One shouldn’t be a scientist or a researcher to understand that there has been changes in the form online advertising has taken place over the last couple of decades.

The 1990’s

The 1990’s saw Online Advertising primarily focused on email marketing, classifieds and banner ads. Come the new millennium, there happened a change with contextual advertising in the form of text ads taking the numero uno position.

2005 and beyond

Soon after 2005, Online advertising practically exploded with displays (static, rich media and pop-ups), rich content multimedia and search engines. This latest trend has gathered the maximum revenue and has grown in leaps and bounds.

What will drive the future?

Going into the technical specifications, Online advertising is done by keeping two factors in consideration - users’ demographic information and online behaviour. This is studied by understanding the the user’s gender, age, location, income bracket, browsing history etc. With the changing trends, the online preferences of users’ go through varying degrees of change. As media buyers, the study of the following areas which are doing pretty good nowadays will help strategize for the future -

1. Mobile Technology - The drastic decrease in rates of 3G phones have made them affordable for the common man. With figures indicating increase in data services from mobile phones, there lies a scope of building up a partnership between media buyers and mobile content providers. The future holds good here because presently a few companies have successfully followed this in recent times with the introduction of mobile coupons, product campaigns, click to call services etc.

2. Virtual Communities - The plethora of social networking communities have started acting as a paradise for online advertisers because these communities bridge the distances between old friends, bring together people with same interests etc. People keep on coming back to these sites and therein the advertiser extends the scope of its services and generates revenue.

3. Spreading the word - This is purely intentional in nature and is deliberately done to increase the target audience. This is also termed as Viral Marketing and occurs through word of mouth which results in a buzz being created about the ad. The first step in advertising i.e. attracting your audience takes place through this and then after the chances of a sale increase significantly.

4. Ad Customization - The biggies in this space will soon implement this personalization of ad concept to specific users. Extensive data analytics can reveal the details about a prospective user and thus the advertiser can customize its ad services keeping in mind the user’s needs, wants and desires.

In early 2008, Julie Ruvolo wrote, “Some of the trends in Online Advertising that people talked about were (a) Content versus community ad-targeting emerging as a major debate (b). The gap widening between the proportion of people online, and the proportion of ad dollars spent online“. These concerns are very genuine and our national advertisers should be able to address this issue beforehand so that it does not become a problem for the parties involed.

For sure, Online Advertising is here to say and can only grow big. It is also expected to change its way to reach the masses as it has done thrice over the last two decades.

Ever wondered - Which is the biggest catalyst in Online Advertising ?

It is the ‘money’ that people have and generate from Online Advertising. The APIs will probably be the biggest drivers in the emergence of a new advertising and pricing model in the near future. Let’s wait and watch ‘the change’.

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